Questions Answered For Employees Covered By The Government's COVID-19 Temporary Wage Subsidy Scheme - April 16, 2020
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April 16, 2020
Questions Answered For
Employees Covered By The
Government’s COVID-19
Temporary Wage Subsidy
Scheme
Document Classification: Class 1 - GeneralThis Questions Answered document has been developed for employees
who are included in the Government’s COVID-19 Temporary Wage Subsidy
Scheme (TWSS) and for whom we are claiming the scheme.
You are included in this scheme as it applies to employees whose average
net weekly pay was €960 or below (after Income Tax, Universal Social
Charge (USC) and employee PRSI) in January and February 2020.
To avail of the scheme there are very explicit rules that daa must follow and
we have taken decisions based on these rules.
Please take the time to read this document as it contains very important
information that you need to be aware of, including decisions that
Revenue has taken which may result in some future tax liability for
employees who are part of the scheme.
We have grouped the answers into three sections:
Section 1 - What the TWSS is and why you are covered by it
Section 2 - What it means for your pay and pension contributions
Section 3 - What it means for leave request and entitlements.
If you have any questions on information contained in this document,
please submit them online through the iHR portal via iConnect or contact
our iHR team on 1800 804 313.
We will update this document when additional information becomes
available from the Government/Revenue, and to answer any further
questions we receive.
Document Classification: Class 1 - GeneralSection 1
The Government’s COVID-19 Temporary
Wage Subsidy Scheme (TWSS) Explained
1. What is the Government’s COVID-19 Temporary Wage Subsidy Scheme?
The Government has set up the COVID-19 Temporary Wage Subsidy Scheme (TWSS) to help
employers pay their employees during the current pandemic.
The scheme aims to maintain the viability of businesses, jobs and incomes and the link between
employers and employees during this significant disruption.
2. How long will the TWSS operate for?
The TWSS was launched on March 26 and will run initially for a 12-week period.
The scheme comes into effect for those eligible employees from Sunday, March 29 (Fortnight 9)
which is the timekeeping period from March 29 – April 11 and will be shown in payslips from April
22 to June 17.
3. Is daa availing of the TWSS?
Yes, we have applied to avail of this scheme.
4. Why are we availing of it?
Our business has been significantly impacted. Passenger numbers are down by 99% at Cork and
Dublin airports and with virtually no revenue coming in we have applied for this scheme as it is
critical that we use any financial supports available to us at this difficult time.
This scheme provides the payment of income supports to employers in respect of eligible
employees where the employer’s business activities have experienced significant negative
disruption due to the COVID-19 pandemic.
Document Classification: Class 1 - General5. How does the TWSS work?
This scheme will refund daa up to 70% of the amount we pay each qualifying employee up to a
maximum level of €410 per week.
The subsidy is based on an employee's Average Net Weekly Pay in January and February 2020
after Income Tax, USC and PRSI deductions. It is not based on an employee’s gross pay i.e. your
pay before deductions.
Based on the rules of the scheme, the subsidy will be included as part of your fortnightly pay
and daa will top up this subsidy by the agreed rates - 100% until April 26 and 80% until June 20.
6. How will my Average Net Weekly Pay be calculated?
We will calculate your Average New Weekly Pay for you, but below is an explanation on how it
will be worked out.
Revenue has issued very clear instructions about how it should be calculated, and we must
follow these rules to avail of the scheme.
• Take the employee’s gross pay for every pay period in January and February 2020.
• Subtract the Income Tax, USC and Employee PRSI paid for this period.
• Total this figure for each pay date in January and February 2020 and divide this by the
number of insurable weeks (capped at 9) for this period.
• This provides an employee’s average net weekly pay that must be used to calculate the
subsidy and top up amounts to keep employees at the committed level. An employer
cannot pay an employee more than the combined subsidy and maximum top up
amount.
• As you will have other deductions that do not form part of the calculation rules, the
average net weekly pay will be different from the normal net pay on your payslips, as
your payslips may include other deductions such as credit union payments and ALSAA
membership fees.
7. How do I know if I am included in the Scheme?
We are writing to all employees to advise them whether they are included in the scheme
or not.
The TWSS applies to employees whose average net weekly pay was €960 or below (after Income
Tax, USC and employee PRSI) in January and February 2020.
Document Classification: Class 1 - GeneralAs the scheme rules state that calculations have to be based on earnings in January and
February 2020, there are a small number of exceptions where employees who would normally
satisfy the financial criteria are not included in this scheme.
For an example, if an employee was on unpaid leave during this time, they would not have
received any payments and therefore would not meet the criteria to be included in the scheme.
In these cases, we will continue to pay these employees as already committed.
8. Is there anything I need to do if I am included in the TWSS?
No, you do not need do anything. You do not need to contact the Revenue Commissioners or
the Department of Employment Affairs and Social Protection.
If you are currently absent from work, you need to stop claiming an Illness Benefit payment or
COVID-19 Enhanced Illness Benefit as you are not eligible to claim these benefits while availing
of the TWSS.
9. Can I opt out?
No – applications have been made automatically. We are applying for the TWSS as it is critical
that we use any financial supports available to us at this difficult time.
10. Can I also claim other income support payments?
As daa is included in the TWSS then you cannot avail of other supports related to Covid-19.
However, you should check with Social Welfare in relation to other social welfare payments.
11. If the Government is paying a portion of my pay why is daa not topping up my pay
to 100% for the duration of the scheme?
We had committed to paying all our employees in full until April 25 and this will be reflected in
your payslip of May 6, 2020. Unfortunately, we can’t afford to maintain this level after this date.
As we have indicated previously, we have almost no revenue coming into our business. The
reduction in hours to a four-day week means that your pay will therefore be reduced to 80% in
line with the reduction in hours worked.
Document Classification: Class 1 - GeneralSection 2
Your Pay And Pension Contributions
Explained
1. Will my payslip look different?
Yes, if you are covered by the TWSS you will only see two items on the left-hand side of your
payslip – ‘GovCov19 WageSub’ and ‘Top Up Payment’.
There will also be some changes on the right-hand side of your payslip e.g. there will be no PRSI
deductions for the duration of the TWSS. Also, your USC and net tax deductions will be lower as
the subsidy is not taxable when it is paid. There won’t be any reference to bridging payment
repayment and employee pension contributions if these currently apply to you.
2. What will happen to my bridging payment repayment?
As part of the application of the TWSS any bridging payment repayments (if applicable) will be
deferred temporarily for the duration of the scheme.
3. What will happen to pension contributions for the duration of the TWSS?
We will continue to make employer pension contributions at the current employer contribution
percentages. This will be pro-rated from April 26 and will be based on 80% of previous employer
contributions.
However, all employee pension contributions and Additional Voluntary Contributions
(AVCs) will be suspended for the duration of the TWSS.
This applies to the following schemes:
• daa Retirement Savings Account
• Aer Rianta International Pensions & Death Benefits Plan
• Personal Retirement Savings Account (PRSA)
• Irish Airlines (General Employees) Supplementary Personal Pension Plan
Some members of these schemes may wish to make pension contributions to their account
during this time or to top up through AVC contributions later in the year. If members would like
to explore these options, they should contact our iHR team – either raise a ticket through the
iHR portal via iConnect or contact our iHR team on 1800 804 313 – who will be able to explain
the process and provide contact details for our pension partner Invesco.
Document Classification: Class 1 - General4. What impact will this have on my pension if I am due to retire this year?
If you are due to retire during the period of the TWSS, we will not apply for this scheme on your
behalf. However, you can continue to contribute to your pension if you wish to do so.
If you would like to do this, you should contact our iHR team – either raise a ticket through the
iHR portal via iConnect or contact our iHR team on 1800 804 313 – who will be able to explain
the process and provide Invesco contact details.
5. What will happen my Tax Saver and Cycle To Work deductions?
As part of the application of the TWSS any Tax Saver and Cycle To Work deductions will be
deferred temporarily for the duration of the scheme. We are unable to process any pre-tax
deductions as this would impact on the implementation of the scheme. We will also be unable
to process any new deductions while the scheme is on operation.
6. Will the scheme have an impact on my voluntary payroll deductions (ALSAA, Credit
Union, draws etc.)?
As you have previously agreed to voluntary deductions then we will continue to facilitate these
deductions for you. If you would like to stop these deductions, then please raise a ticket through
the iHR portal via iConnect or contact our iHR team on 1800 804 313. If you want to stop
deductions to third parties i.e. Credit Union, you will need to contact these institutions directly.
We will continue to take these deductions once you have enough net pay to pay them.
There is a full list of these deductions on Page 11 (Appendix 1).
7. What will happen to elements that attract a Benefit In Kind (BIK) tax liability?
Payments subject to BIK e.g. flight concessions, cannot be processed for the duration of the
TWSS. However, BIK must be processed in the current tax year and will resume when the TWSS
finishes.
8. Will I have any future tax liability as a result of being included in the TWSS?
Normal State deductions including Income Tax, USC, and PRSI are not deducted from the TWSS
subsidy. However, you will continue to build insurable weeks for the purpose of social welfare
benefit.
Document Classification: Class 1 - GeneralAs the normal State deductions if Income tax USC and PRSI are not deducted from the
subsidy, you may have a future tax lability depending on your personal tax circumstances
at the end of 2020. If you do have a tax liability it is important to note that it will be an
employee’s responsibility to manage this directly with Revenue. The company will not be
undertaking this on behalf of employees. The Government has set up the TWSS subsidy
this way, this was not a decision that the company made.
Revenue has said that any tax liability will be collected by reducing an employee’s tax credits in
the future in order to smooth out the impact of any tax liability you may have. Revenue will
adjust your tax credits based on your personal tax arrangements.
Where you see an increase in your net weekly pay for the duration of the TWSS this could be an
indication of a possible tax liability for you at the end of tax year.
If you would like clarification on your personal circumstances, you should contact Revenue
directly.
9. Will I be able to work additional hours for the duration of the TWSS?
The TWSS does not allow for additional working hours so you will not be able to work additional
hours for the duration of the TWSS.
Section 3
Leave Entitlements Explained
1. What do I need to do if I am on sick leave during the period of the TWSS?
You should follow the current sick leave policy which includes contacting your supervisor/
manager and submitting a doctor’s certificate to both them and also to sickcerts@daa.ie.
However, you should not claim for an Illness Benefit payment or COVID-19 Enhanced
Illness Benefit as you are not eligible to claim these benefits while availing of the TWSS. If
you are already in receipt of either of these Illness benefit payments while availing of the
TWSS, then you must notify the Department of Employment Affairs and Social Protection
(DEASP) immediately to avoid overpayments being recovered by DEASP.
Document Classification: Class 1 - General2. If I am out on sick leave while the TWSS is in operation, will I receive sick pay?
If you are absent from work due to illness during the TWSS your subsidy and top up payment
will not be affected. However, once the scheme ends, we will reconcile all time and attendance
records, including sick leave events, and adjust your pay accordingly.
Our Attendance and Absence Management policies will continue to apply. You may however
have a pay or time liability in the future depending on your circumstances. These will be
recouped from your pay and/or your annual leave/time in lieu balances at the end of the TWSS.
3. How will Public Holiday and Company Holiday payments be treated over the
period of the TWSS?
If you work shift and are rostered or resting on a public holiday or a company holiday over the
period of the TWSS, then any public holiday payment will be processed as time in lieu. If you
normally receive these as payments and wish to change these hours to pay, then you should
raise a request through iHR - raise a ticket through the iHR portal via iConnect or contact our
iHR team on 1800 804 313 - by Friday, May 15.
Where requested, our payroll team will convert those public holiday entitlement hours to pay,
when we are in position to process variable payments at the end of the scheme.
4. What happens if I am on Maternity or Adoptive leave when the TWSS starts?
If you are currently on maternity or adoptive leave (protected leave under legislation), you will
not be included in the TWSS. We will continue to pay you at your current rate of pay, less the
standard maternity leave benefit.
If there are other reductions or increases in hours after April 26, an employee who has already
started maternity or adoptive leave, will not be impacted. This is in keeping with current practice
across the company.
5. What should I do if I am due to go on Maternity or Adoptive leave during the
TWSS?
If you are due to go on Maternity or Adoptive leave during the period of the TWSS, then you
should follow the normal procedures in line with our Maternity and Adoptive Leave policies.
Once you start your maternity or adoptive leave you will not be part of the TWSS to ensure it
does not impact your maternity benefit payment.
Document Classification: Class 1 - General6. What happens if I am due to return from Maternity or Adoptive leave during the
TWSS?
If you are returning from Maternity or Adoptive leave, then you should follow the normal
procedures in line with our Maternity and Adoptive Leave policies. When you return from
maternity or adoptive leave, we will claim the TWSS if applicable.
We will write to you before you return to let you know if we will be claiming the TWSS on your
behalf from the date you return to work and explain your pay arrangements.
7. What happens if I’m absent from work between now and the end of the TWSS e.g.
on annual leave, parental leave or unpaid leave?
You should continue to apply for your leave using the normal process and in agreement with
your manger/supervisor.
Our Attendance and Absence Management policies will continue to apply. You may however
have a pay or time liability in the future depending on your circumstances e.g. if you have
no sick credits and are absent during the TWSS, you will be paid the full subsidy and top up
payment from the company due to the rules of the scheme. However, once the TWSS ends, we
will process this absence and reduce your pay accordingly to recover any temporary over
payment
8. If I am currently on permanent health insurance/income protection, what does the
TWSS mean for me?
If you are currently in receipt of Income Protection, the benefit payable from your PHI policy will
not be impacted as we are not claiming the TWSS on your behalf.
Document Classification: Class 1 - GeneralAppendix 1
Examples Of Voluntary Payroll Deductions
Internal Deductions Contact Details
Airports Rowing Charity Draw ROWING300MEMBERSCHARITYDRAW@DUBLINAIRPORT.COM
or BRIAN.DEMPSEY@DUBLINAIRPORT.COM,
APFS Band Draw BRIAN.DEMPSEY@DUBLINAIRPORT.COM,
Church Please raise an iHR ticket
Cork Airport Police Social Club STEPHEN.OMAHONEY@DAA.IE or SEAN.OFARRELL@DAA.IE
Cork FOPI Marc.lake@corkairport.com
daa Charity Please raise an iHR ticket
daa Staff Charity Draw A Brendan.Lavin@daa.ie
daa Staff Charity Draw B Brendan.Lavin@daa.ie
Dub FOPI Marc.lake@corkairport.com
Electricians Association PHILIP.VAVASOUR@DUBLINAIRPORT.COM or
COLIN.OGRADY@DUBLINAIRPORT.COM or
JEFF.KING@DUBLINAIRPORT.COM
GAA SEAN.MACSUIBHNE@CORKAIRPORT.COM
Soccer Draw GARY.DONOHOE@DUBLINAIRPORT.COM
Soccer Savings GARY.DONOHOE@DUBLINAIRPORT.COM
Social Club garrett.lyones@corkairport.com
3rd Party Deductions Contact Details
Amicus Please raise an iHR ticket
ALSAA SANDRA@ALSAA.IE
AXA House Insurance EASIPAY.QUERIES@AXA.IE
Child Research Please raise an iHR ticket
Credit Union Please call 01-8445187
Forsa Please raise an iHR ticket
Local Property Tax Please contact Revenue
Mandate Please raise an iHR ticket
Royal Liver PREMOPS.CNOP@ROYAL-LONDON.CO.UK
SIPTU Deduction Please raise an iHR ticket
TEEU Please raise an iHR ticket
UCATT Please raise an iHR ticket
VHI CATHERINE.NILAND@VHI.IE or LEANNE.DOWLING@VHI.IE
VHI Additional CATHERINE.NILAND@VHI.IE or LEANNE.DOWLING@VHI.IE
Document Classification: Class 1 - GeneralIf you have any questions on
information in this document,
you can submit them online
through the iHR portal via
iConnect or contact our iHR
team on 1800 804 313.
Document Classification: Class 1 - GeneralYou can also read
